Low Prices?! Save Us!

Here's a letter that I sent to ForeignPolicy.com:

Phillip Levy reviews what he presents as an exhaustive list of Uncle Sam's options for dealing with China's allegedly undervalued currency ("Is It Time to Ding Beijing? March 3).  But, in fact, the list isn't complete, for it doesn't include the best option: do nothing.

"How silly!" some will snicker.  Bear with me.

Suppose that Beijing, rather than spending resources on keeping the yuan undervalued, instead spends these resources building...